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Sometimes it does...but not always. Some like the higher sales price
Many factors come into play when there is multiple contract competion.
Having confidence in the agent and the loan officer are major considerations.
As with almost all subjects, the answer is "It depends". It depends on the sellers motivation, how much of a price difference, what the other terms and conditions of the offer are, etc., etc., etc.
You can't generalize. It all depends on the seller. It also depends upon what the 'cash price' is. I've found that most cash buyers want a signficiant discount.
It depends on the seller and buyers motivation. In most cases cash buyers want a significiant discount. No one wants to looose money (in this case the seller).
It depends on the sellers situation. A five day close may not work for them.
In the case of multiple offers, many buyers submit clean offers.
It depends on Sellers motivation. It is important to try to find out what they would value. Sometimes it is a rent back or longer escrow.
Last week I wrote similar offer: full price, all cash, short escrow, no contingencies. We lost, and I knew we would since in that case seller went for ''highest and best'' not necessary shortest of about 15 offers, and I knew that some offers we way over.
It really depends on how much lower the cash offer is when compared to the financing offer. Most sellers will give a slight discount for cash. However, when in a sellers market and with values rising as they are here in Florida, sellers are holding firm in a lot of cases.
To give more insight to your question, take a close look at the real difference between a cash offer and well qualified conventional financed offer in which both deals are closing within 30 days.
In each case the buyer or buyers lender will wire the funds into the closing agents account and the seller will get paid. As long as the buyer has made a complete application with a lender and provided the sellers agent with a letter as to that pre-approval, I can't see a seller discounting a property too much for a cash offer. Especially in the current market.